Setup Considerations: Services CPQ

What It Is

Services Configure, Price, Quote (CPQ) automates the quote to cash process. It offers an accurate and easily repeatable way to scope and price deals. Services CPQ leverages Professional Services Automation (PSA) and Revenue price list configurations to populate the grid data automatically in the quote. It enables you to:

Create quotes with services that include roles, items and recurring items, expenses, third party costs, and discounts.

Copy and paste values from external tools, or enter values manually in the quote grid.

Estimate service effort at either a high level, or define a more granular work breakdown structure (WBS) using phases or phases and tasks.

Add Daily or Hourly Rates for quote roles and define requirements for roles.

Quote for services with fixed fee or time and expense billing models.

Automatically adjust quote line prices by setting a specific Price, Margin, or Discount target value for a service or quote.

Define service catalogs with pre-configured services, roles, and expenses.

Prohibit discounts in role lines, excluding them from service adjustments.

Set up document templates and generate documents for quotes dynamically.

View or edit Quotes in different timeline-based views by weeks, months, contract years, or summary view.

View a quote by time period such as weeks, months, phases, contract years, or summary. You can also view them by amounts such as quantity, price, cost, or FTE (Full Time Equivalent).

Business Benefits

Services CPQ simplifies the process of creating quotes in Workday from opportunities and converting them to projects and contracts based on changes in opportunity details. It provides:

Access to the latest sales data and 1 source of truth for pricing, resourcing, and billing data.

Better visibility between third party CRM and Workday.

Flexibility in configuring various service offerings for a given quote.

Timely insight into resource forecasting and resource management.

Faster and more accurate quote creation with price granularity to suit your business needs.

Improved flexibility by allowing you to quote in Workday without entirely replacing your existing spreadsheets.

The ability to configure Services Catalog allowing you to create more accurate quotes quickly for the repeatable services and reduces the manual effort involved in defining the same baseline services, providing standardization.

Automated document generation process providing improved efficiency.

Use Cases

As a CPQ Specialist, you can:

Create quotes for services that include phases, tasks, roles, items, expenses, discounts, and third-party costs based on customer needs.

Copy existing quotes to create multiple iterations for various what-if scenarios.

Generate and print quote documents and send them to customers for review and negotiation.

Create opportunity projects, projects, resource plans, and resource forecasts from primary approved quotes.

Create customer contracts, billing schedules, and revenue recognition schedules from primary approved quotes based on changes in opportunity details.

Questions to Consider

Questions	Considerations
Do you need to iterate and create multiple options of a quote?	You can copy quotes within an opportunity. Workday copies all details into the draft quote.
Do you need rates to default in for project roles on a quote?	You can edit and create project billing rate sheets to populate the unit list prices for specific roles on your quote.
Do you need costs to populate the labor and items on a quote?	You can set up the standard cost rate sheet by company to populate the unit price for roles and define the sales item as quotable to add unit cost for items.
Do you need to record and bill worker expense reports against the project?	You can add expense lines to the quote for a billable project time and expense line with a transaction source of time on the customer contract.
Do you need to record and bill supplier invoices against the project?	You can add third party cost lines to the quote for a billable project time and expense line with a transaction source of supplier invoice on the customer contract.
Do you need to have dynamic approvals based on the quote data?	Workday provides a configurable business process framework for Quotes that you can set up to include approvals and condition rules to suit your business needs.
Do you need to create documents automatically from the quote details?	You can create document templates from within a quote configuration based on the quote data.

Requirements

Ensure that:

You have the Workday Projects, Project Billing, and Services CPQ SKUs.

The integration with your existing Customer Relationship Management (CRM) source is set up to sync customer and opportunity records.

The required worktags align between quotes, projects, and customer contracts.

The validations align between Quote, Project, and Customer Contract.

You've configured the necessary business processes. See the

Business Process

section for additional information.

You've configured quote to contract mapping in the Services CPQ settings.

You've set up Opportunities, Project Hierarchies, Project Roles, Project Billing Rate Sheets, Project Standard Cost Rate Sheets, and Sales Items, Sales Item Price List, Rate categories, and Revenue categories.

You've set the Sales Items as

Quotable

to default the Unit Cost in the Item line.

You've set up Project Phases and Project Tasks when building a quote with phases and tasks.

The document template is configured and published.

The service catalog is activated when you have one.

The Allow Paste from Spreadsheets into Quote flag is enabled for copying quote data from spreadsheet.

You've added the snippet category to the document template so as to hydrate the content properly in the quote document.

Recommendations

To combine all services into 1 project, enable the

Manage Multiple Services as a Single Project

option in Services CPQ settings.

To display project ID in the project name, enable the

Include ~Project~ ID in ~Project~ Name

option.

Specify the revenue treatment and revenue schedule template for each billing model and associated quote line items for contract creation.

To print the quote document, ensure to add the

Print Quote Documents PDF

and

Print Quote Documents DocX

service steps in the Quote Event
business process.

We recommend adding the name of the Service to the start of each Snippet so as to easily identify them when they are retrieved in the quote document.

To add a phase or task based service select the

Add Custom Service

option when creating a quote and select

With Phases

or

With Phases and Tasks

option.

To have more targeted rates default in a role, configure rate categories and rate category members. You can set them up on the Project Billing Rate Sheet and then select the desired rate in the role during quote creation for a more specific price.

To include subtotals for services or roles in a quote document, create tables with repeating data in the first column and numeric or currency field in the last column.

When copying both Task and Phase allocations from a single table in a spreadsheet, ensure that you first copy and paste the tasks and phases to create the WBS structure, then copy and paste the allocations.

To create a Project Plan automatically after the primary Quote is approved, ensure that you configure the

Process Project Plan from Services CPQ

as a service step on the Quote Event
business process.

To create a Project Plan automatically after the Opportunity Project has been converted to a regular project, ensure that you configure

Process Project Plan from Services CPQ

as a service step on the Convert Opportunity Project to Project
business process.

Limitations

Initially, Workday creates only 1 Unnamed Resource (UNR) for an opportunity project generated from Services CPQ but later the Project Manager can add multiple resources.

Only approved primary quotes create an opportunity project.

Workday doesn't create a Project Plan unless all opportunity projects are either approved, canceled, or denied for all services in the quote.

We limit the services on a quote to a maximum of 5 years in duration.

Quote duration can be a maximum of 10 years.

You can add a maximum of 5 rate categories for roles.

You can copy and paste a maximum of 500 cells in the quote grid.

Copying a quote doesn't copy downstream attributes.

You can’t add expenses and third party costs amounts in the Services Catalog. The sales specialist will need to enter it when they add the service to a quote.

Once you configure an effort estimation for the service and allocate the hours in the service, you can’t change the

Effort Estimation

type.

In this Work Breakdown Structure (WBS) view, you can’t:

Edit or delete roles.

View a duration based service.

View or allocate non-labor items.

Copy data from a spreadsheet and paste into the quote. You can only do so in the

Timeline

and

Summary

view.

In the timeline view, you can’t Add hours for the labor unless it is already allocated through the WBS page for the given time-period

Tenant Setup

Access the

ID Generator for Quotes

prompt under the

Business Document Sequence ID

section, on the

Edit Tenant Setup - Financials

task to configure the quote sequence generator.

Security

Configure these security domains in the Services CPQ functional area:

Domain	Considerations
Process: Quotes	Access this security domain to create, edit, and delete quotes, and to view the related reporting. Allowed Security Group Types: Roles - Company Roles - Company Hierarchy Roles - Customer Roles - Project Roles - Project Hierarchy Unconstrained Groups
Set Up: Quotes	Access this security domain to setup quote functionality. Allowed Security Group Types: Implementers Unconstrained Groups
View: Quote Project Hierarchies	Access this security domain to select project hierarchies when creating quotes. Allowed Security Group Types: Public Groups Roles - Project Hierarchy Unconstrained Groups
Set Up: Opportunity	Access this domain to create, maintain opportunity statuses, and view related reports.

Business Processes

Business Process	Considerations
Opportunity Event	Configure to add subprocesses, notifications, and approvals for managing the workflow of project and customer contracts creation based on changes in Opportunity details.
Quote Event	Configure to route quotes for approve and deny actions. Allowed Services: Document Delivery Document Retrieval Print Quote Documents PDF Print Quote Documents DocX
Create Project from Services CPQ Edit Project from Services CPQ Resource Plan Line from Services CPQ	Configure these business processes as subprocesses on the Quote Event business process to create opportunity projects and resource plan lines from a quote. When the subprocesses are initiated, Workday launches these business processes: Create Project Edit Project Project Resource Plan Line If you have condition rules on the initiation step of these business processes, Workday ignores them when the project is created from Services CPQ. We recommend moving the validations to Project or Project Resource Plan in the Maintain Custom Validations task or as condition rules on the Quote Event business process to keep the same functionality.
Convert Opportunity Project with Quote to Project Create Customer Contract with Quote	Configure these business processes as subprocesses on the Opportunity Event business process to create customer contracts from a quote and convert opportunity projects to standard projects. When the subprocesses are initiated, Workday launches these business processes: Convert Opportunity Project to Project Customer Contract Event

Reporting

Report or Dashboard	Considerations
Find Opportunities	View opportunities in Open status to create a quote.
Services Catalog Faceted Report	View available service catalogs by project hierarchy, business unit, snippets, region, and catalog status.
View Quote Configuration	View, edit, and remove document templates.

We suggest using these report data sources to build custom reports for reporting on quotes and quote lines:

Quote

on business object: Use it to report on quotes and summary information.

Quote Lines

: Use it to report on role lines and item lines included in a quote.

Quote Services

: Use it to report on services in a quote.

Quote Configurations

: Use it to report on various quote configurations, snapshots, usage, status, and associated document templates.

Integrations

Web Service	Considerations
Get Quote Allocations	Retrieves the allocations for all roles in various services for the specified Quote.
Submit Quote Allocations	Adds or updates the role allocations in services for the specified Quote.
Get Quote Document Snippet Categories	Retrieves all snippet categories.
Put Quote Document Snippet Category	Creates, edits, or deletes snippet categories.
Get Quote Change Reasons	Retrieves all quote change reasons.
Put Quote Change Reason	Creates, edits, and deletes quote change reasons.
Get Quote Configurations	Retrieves quote configurations.
Put Quote Configurations	Creates and updates quote configurations. You can only edit a configuration if it's not in use.
Get Quote Services and Lines	Retrieves services and lines for the specified quote.
Submit Quote Services and Lines	Creates or updates the quote, services, and lines.
Get Quote Work Breakdown Structures	Retrieves phases and tasks for the services in the Quote Work Breakdown Structure.
Submit Quote Work Breakdown Structure	Creates or updates phases and tasks for the services in the Quote Work Breakdown Structure.
Get Services Catalog Items	Retrieves all service catalog items.
Put Services Catalog Item	Creates, edits, or deletes service catalog items.
Get Services CPQ Settings	Retrieves all fields for default settings for Services CPQ.
Put Services CPQ Settings	Creates, updates, or deletes all default settings for Services CPQ.
Submit Opportunity	Creates or updates the customer opportunity.
Get Opportunity Custom Status Settings	Retrieves all user created custom statuses for opportunity.
Put Opportunity Custom Status Settings	Creates or updates the custom opportunity statuses.

Connections and Touchpoints

Features	Considerations
Salesforce Opportunity	When an opportunity has an Open status, you can bring it into Workday to build a quote.
Projects	Once you approve a primary quote, Workday creates an opportunity project with resources, resource plan, and resource forecast. Workday creates a weekly forecast at the project level. The role from a quote maps to an unnamed resource on the opportunity project. You can add additional resources after the initial creation of 1 UNR You can’t edit a project role, allocation type, start and end date, and estimated hours on the resource plan lines until the opportunity has a status of closed. When you change a quote from Primary to Not Primary , Workday inactivates the associated opportunity project. Workday converts the opportunity project to a standard project when a subprocess is configured on the Opportunity Event business process.
Revenue	After you change an opportunity detail such as probability or status and create a project from quote, Workday automatically creates a customer contract and populates: Revenue Category from Maintain Services CPQ Settings task. If you haven't configured the mapping, the contract creation will fail. Billing Schedule Template based on the price model. Revenue Schedule Template based on the price model. Worktags from the quote header. Effective date from the quote start date. When any required fields are missing from the quote, Workday creates the contract in draft status.
Sales Items	When you set a sales item as Quotable , Workday makes that item available for use during quote creation.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Other Impacts

No impact.